Is Ashika Credit overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ashika Credit has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its PE ratio of -95.33, EV to EBITDA of -106.42, and a Price to Book Value of 3.64. These ratios suggest that the market is pricing the stock at an unsustainable level compared to its earnings and asset value.
In comparison to its peers, Ashika Credit's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance shows a more attractive valuation with an EV to EBITDA of 8.94. Furthermore, Ashika Credit's recent stock performance has been poor, with a year-to-date return of -57.11%, contrasting sharply with the Sensex's positive return of 7.44% over the same period. This reinforces the view that Ashika Credit is currently overvalued in the market.